Vicom's Q2 profit rises 4.8% as costs decline

VICOM chalked up a 4.8 per cent year-on-year rise in net profit to S$7.58 million for the second quarter ended June 30, 2015, lifted in part by lower costs.

Revenue was nearly flat at S$27.29 million while earnings per share came to 8.55 Singapore cents, up from 8.16 Singapore cents a year ago.

Operating costs slid 1.5 per cent to S$18.33 million, which contributed to operating profit rising 3.6 per cent to S$8.97 million.

For the first half of the year, net profit was up 5 per cent to S$16 million and revenue was 2.6 per cent higher at S$55.58 million.

The group said: "Demand for vehicle testing services is expected to moderate as more vehicles are expected to be deregistered during the year. Demand for non-vehicle testing services is expected to fall as growth in some industries slows."

Vicom has declared an interim dividend of 8.75 Singapore cents, to be paid out Aug 26.